Shree Bhavya Fabrics Limited
Introduction
Shree Bhavya Fabrics Limited is an Indian textile company that is involved in production and processing of fabrics. The company was founded in 1988 and it is located in Ahmedabad in the textile industry which is among the most ancient and important industries in India.
Industry
India is a large contributor to the textile industry to GDP, exports, and employment. It is characterized by extreme competition, sensitivity to price and reliance on raw materials like cotton and synthetic fibers. Grand potential to expand the industry is through increasing domestic demand, export, and government incentives such as textile parks, and other incentives based on production. Nevertheless, it is also struggling with fluctuation in prices of raw materials, international competition, and uncertainties in economies.
This analysis aims to analyze the financial and operational performance of the company, the market position, as well as the analysis of its strengths, weaknesses, and future.
Company Overview
Shree Bhavya Fabrics Limited was established in 1988 and it has a long history of work experience in the textile industry, reaching 30 years. The registered office and the manufacturing plant of the company is based in Ahmedabad, Gujarat.
The company mostly deals in activities of manufacturing and trading of fabrics. It relies on sourcing of raw materials, processing of fabrics, and selling them in the domestic markets as its business model. It can also venture in other activities related to textile trading and alliances with other textile companies.
The major product lines of the company are some kinds of fabrics that are applied in the garment and textile sectors. Nevertheless, according to financial information presented previously, the company has little or no business sales at present, which means that business is not active.
The company has a small competitive advantage and is a small-cap company in the textile industry in terms of market position. It works in a very competitive market where giant textile manufacturers exist.
Promoter / Founder Promotion.
The company is headed by its Chairman and Managing Director Mr. Purushottam R. Agarwal and other directors and other key individuals who head the company.
Experienced professionals in the board are:
Mr. Kishan M. Yadav (CFO)
Independent compliance officers and directors.
Its promoters are also experienced in the field of textile operations and financial management. They have played a significant role in governance and controlling regulatory compliance.
Strategic decision-making including related-party transactions and operational planning is also part of the management as evident in board resolutions and AGM notices.
Financial Statement
Profit and Loss
Particulars | Mar-23 | Mar-24 | Mar-25 |
Sales | 193.20 | 169.18 | 182.85 |
Gross Profit | 13.24 | 15.11 | 13.05 |
EBITDA | 10.15 | 11.04 | 11.24 |
Depreciation | 0.86 | 0.86 | 1.09 |
Interest | 7.43 | 7.63 | 7.15 |
Earnings Before Tax (EBT) | 1.86 | 2.55 | 3.00 |
Net Profit | 1.54 | 1.93 | 2.35 |
Balance Sheet
Particulars | Mar-23 | Mar-24 | Mar-25 |
Equity Share Capital | 9.50 | 9.50 | 9.50 |
Reserves | 21.57 | 23.50 | 25.85 |
Equity (Total) | 31.07 | 33.00 | 35.35 |
Borrowings | 58.81 | 57.60 | 64.28 |
Other Liabilities (CL) | 69.86 | 64.11 | 60.71 |
Total Liabilities | 159.74 | 154.71 | 160.34 |
Fixed Assets | 11.16 | 11.04 | 11.82 |
Current Assets | 142.86 | 137.79 | 141.78 |
Total Assets | 159.74 | 154.71 | 160.34 |
Cash Flow Statement
Particulars | Mar-23 | Mar-24 | Mar-25 |
Operating Cash Flow | 1843 | 973 | 2931 |
Investing Cash Flow | 433 | 915 | -1507 |
Financing Cash Flow | -2254 | -2244 | -1034 |
Net Cash Flow | 22 | -356 | 390 |
Ratio Analyis
Ratio | Mar-23 | Mar-24 | Mar-25 |
Net Profit Margin % | 0.80% | 1.14% | 1.29% |
Gross Profit Margin % | 6.85% | 8.93% | 7.14% |
Current Ratio | 2.04 | 2.15 | 2.33 |
Debt to Equity | 1.89 | 1.75 | 1.82 |
Asset Turnover | 1.21 | 1.09 | 1.14 |
Important Implications and Meaning.
Strengths
The long-standing experience in the textile industry is one of the main strengths of the company as it has over 30 years of experience. It also possesses an established governance structure with audit and nomination committees serving as board committees. The company is in accordance with the needs of the regulations and has organized management control.
Weaknesses
One of the shortcomings is that it does not generate any revenue as evidenced by financial reports which show that sales are at zero. This means that the company is not vigorously making profits on its core business. More than that, it is not as competitive in the industry because of its small size and its small market share.
Risk Factors
Some of the risks that the company is exposed to include:
The risk in the industry includes volatility in prices of raw materials and high competition.
Economic risks such as inflation, demand changes.
The risks in the companies, including non-operating income and the struggles of inactive operations.
Related-party transactions also have governance risks when it is not handled well yet above regulatory frameworks, it is approved.
Future Outlook
The future of the company lies with its capacity to recover business and make revenue on its main business. Some of the measures that the management seems to be undertaking include related-party dealings and venturing into operation.
But the prospects of growth of the company are not clear unless the company resumes active production and increases sales. The textile business presents prospects and the company should take advantage of it by undertaking strategic implementation.
Conclusion
To sum up, Shree Bhavya Fabrics Limited has a poor operational profile although it has been in the textile industry a long time. Although the company is budgeting at a rudimentary level in terms of its governance and financial soundness, it has not been generating any revenue, which makes it questionable as to whether the company is sustainable.
Regarding the financial health, the company is seen to be stable though idle. It is not making good use of its assets and it relies on non operating income.
The company is not appealing as an investment at the current time since uncertainty is high, and the company is not active in business. It can be counted as the turnaround case only in case the management is able to revive operations.